Executive Summary:
When an Executive Director (ED) leaves suddenly, it’s the board’s job to keep the organization steady during the transitionary period that results. However, too often boards don’t understand what kind of role they need to play in a leadership transition to ensure it goes smoothly, especially when it comes to hiring and managing an Interim Executive Director (IED). Laying the groundwork for an interim leader, keeping stakeholders informed, partnering actively with the IED, seizing opportunities for the organization, finding a permanent replacement, and managing the handoff are things that boards are uniquely positioned to actively oversee.
The average search for a nonprofit leader takes 6-9 months and that’s a long time to go without a leader at the helm! Some organizations will place a board member or existing staff member into an interim or acting role, which can lead to trouble when the complexities of leadership transition reveal themselves.
Leaning on a professional Interim Executive Director (IED) is a key strategic move that savvy boards make to maintain momentum during the transition and position the organization for future success afterwards. They rightly recognize that bringing in an IED isn’t a stopgap solution, it’s an opportunity for improvement.
Bringing in an IED is always a wise move when a nonprofit organization is losing its leader, but it’s especially critical in the following circumstances:
- After the loss of a founder or long-time leader
- When there is a sudden or unplanned exit
- When an organization is undergoing a strategic shift
And yet, it’s important to understand that while an IED can help considerably during a leadership transition, they can’t lead all alone. An IED is a tool in the hands of the board, which means their use of it will determine its effectiveness.
To get the most out of using an IED, the board has responsibilities before, during, and after the engagement, which include:
Laying The Groundwork
The board must set clear expectations for an incoming IED so everyone involved understands what the role is …and what it isn’t!
An IED role should offer:
- Organizational stabilization
- An honest assessment of what’s working and what needs to be changed
- Continuity to maintain momentum
- A pathway for the next leader
The role should not be:
- A placeholder to make donors happy until a new leader is hired
- A trial run or extended interview for the job
- Justification for the board to be hands off during the transition
Remember, a board needs to be more engaged during a transition, not less engaged! That means the board chair or an oversight committee needs to closely oversee an IED role.
Clearly establish where the board ends and the IED begins. Hire an IED whose professional profile is a match to the organization, its situation, and the goals for the role. We view transition leadership as a skillset and recommend hiring an experienced transition leader.
Set boundaries and determine authority ahead of time so there’s no confusion or hard feelings once an IED is brought in. Settle logistics around contract terms, compensation, the expected duration, and evaluation criteria.
Simply put, know what you want to get out of the engagement and how you’ll measure success before you start!
Communicating with Stakeholders
Communicate early and often!
Proactively communicate internally (to staff) and externally (to donors, funders, partners, and the community) to set them at ease. Use a consistent message to speak with one voice as a board across approved talking points. Be as honest as you can be, reassuring stakeholders about the organization’s outlook to create stability. And don’t forget to honor the outgoing leader’s legacy and contributions in your communications.
After your initial communications keep an eye out for anxiety, burnout, and turnover among employees (especially during longer transition periods) that would indicate that additional communication is needed to keep employees engaged and motivated.
It is normal for staff groups to be worried about an interim leader. Reassure them that you are hiring an experienced transition leader that will make the tenure of the incoming permanent executive longer and more successful. Experienced transition leaders are adept at handling anxious staff groups. This is a critical component of the transition leadership skillset.
Cultivating an Active Partnership
Once an IED has been identified, be deliberate in onboarding them. Provide key information and resources like financial reports, bylaws and governance documents, donor commitments and key relationships, programming details, identified risks, and current priorities to set them up for success. Then clearly communicate how and when they will be evaluated in the role and then evaluate their performance objectively.
Remember, boards should oversee but not micromanage IEDs. Check in regularly to establish an ongoing partnership and mitigate problems popping up unexpectedly. Speak candidly and encourage transparency to facilitate accountability at all levels.
Seizing Available Opportunities
One of the biggest benefits that nonprofit interim leaders bring to the table is objectivity. However, an outside perspective is only beneficial if it’s actually heard by the people inside the organization. Listen to the objective perspective that an IED can offer and be ready to act on what it reveals!
Let your IED do a formal assessment to identify risks and opportunities and do a self-examination as a board to look for areas of improvement as well. Revisit strategy, where needed, to ensure the organization is on track to meet its goals. Prioritize which changes to make now and which can wait until a permanent hire is made. Expect cultural shifts throughout the process and give the organization space to redefine itself apart from its former leader.
Remember, the stronger you can make the organization during the gap period, the better it will look to prospective candidates in the search process for the permanent leader!
Searching for a Permanent Leader
Determine what you want in your next leader, whether it’s more of the same that you had before or something entirely different. Refine the job description and candidate profile based on the organization’s current needs and future goals. Then, trust that your IED is steering the ship and take your time conducting the search. Don’t rush to fill the role! Having time and space for the search is one of the significant benefits of interim leadership.
As you look for your next leader, decide whether the IED will be part of the search process and what kind of a role they’ll play if they are. We recommend giving interim leaders a role in the search process because they’re the person that’s closest to the work. This could be as simple as asking them to be available to answer candidate questions or as involved as having them as a non-voting member of the search committee. However, it is best that they do not lead the search because that’s too much to put on their plate in addition to the mission-critical, day-to-day work they’re already doing.
As a word of caution, it’s typically a bad idea to consider the IED as a candidate for the permanent role. Generally, there are difficult things that need to happen during a leadership transition, which means that leaders who handle these things usually grapple with some amount of burnout. Asking your interim leader to become your permanent leader may very well lead to them being a short timer in the role.
Handing Off Leadership Duties
Once a permanent Executive Director (ED) has been selected, try to have at least a brief overlap with the interim to create a soft handoff and allow enough time to properly transfer key institutional knowledge. Use your IED as a buffer so that the new ED can ease into the role without being overloaded with too many responsibilities right away.
Then, remain engaged as a board even after onboarding is over. Cultivate a relationship with the new ED that facilitates ongoing collaboration.
A leadership gap can feel like a nerve-wracking pause, but with an engaged board it can be one of the most valuable opportunities in your organization’s story. Boards that treat this time as a chance to reflect, strengthen, and plan will come out of it better positioned for success. But an effective leadership transition doesn’t happen by accident. It requires intentional and deliberate actions to succeed – laying the groundwork for an interim engagement, building a partnership, searching for the right kind of new leader, and gradually handing off the leadership baton. Get those pieces right and you’ll come out on the other side of a leadership transition stronger and ready to move forward!
When a leader is lost, the gap they leave can threaten your mission, stall your momentum, and shake your team’s confidence. At Valtas, interim leadership is about far more than keeping the lights on. Our nonprofit interim leaders offer the expertise, perspective, and calm presence needed to steady your operations and set the stage for what comes next.
If you’re losing or have lost your leader, reach out today to schedule a confidential consultation to discuss your organization’s unique needs and challenges!
